3 Questions
What is the formula for calculating prime cost?
$ ext{Prime cost} = ext{Direct materials} + ext{Direct labor} + ext{Direct expenses}$
What is the formula for calculating factory cost?
$ ext{Factory cost} = ext{Prime cost} + ext{Factory overheads}$
What is the formula for calculating total cost?
$ ext{Total cost} = ext{Prime cost} + ext{Factory cost} + ext{Administrative overheads}$
Test your knowledge of cost accounting with this quiz on the introduction and elements of cost. Assess your understanding of cost accounting principles and enhance your expertise in this essential aspect of financial management.
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